Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Q1 2020 Earnings Presentation
23 slides from Pexip Holding Asa's earnings presentation, May 27, 2020
Slide 1: Quarterly Presentation Q1 2020
Meet the world with video communication as it should be Quarterly Presentation Q1 2020 27 May 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer These materials have been produced by Pexip Holding AS (the "Company“, and with subsidiaries the “Group”). The materials have been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representativ
Slide 3: Successfully listed on the Oslo Stock Exchange 14th of May 2020
Successfully listed on the Received significant Oslo Stock Exchange 14th publicity from fully- of May 2020 virtual IPO 3
Slide 4: Business update
Business update ]pexip[
Slide 5: Meet the world with video communication as it should be
Meet the world with video communication as it should be 100% software and cloud based Works everywhere for everyone • Flexible set-up, easy-to-use and manage • Connects across multiple technologies • Integrates with existing workflows • A preferred provider among enterprises 5
Slide 6: Impact of Covid-19 on demand and operations
Impact of Covid-19 on demand and operations Daily peak traffic on Pexip Service Short term priorities and impact • Help customers with short term needs across Pexip Infinity and Pexip as a Service, with a dedicated focus on our healthcare and government customers • Keep our people home and safe – mo
Slide 7: Customer example
Customer example Overview The challenge • Nordic media-tech company • Standardize their way of collaborating • Simplify meeting experiences and improve reliability • 9000 employees • Implemented a global WFH policy with COVID-19 • Customer since April 2019. The solution • Dedicated Infinity in a pri
Slide 8: Telehealth is a rapidly growing vertical, and Pexip is a proud partner
Telehealth is a rapidly growing vertical, and Pexip is a proud partner of leading telehealth providers Partner example Responding to COVID-19 • Sent 700 employees to work from home overnight • 20X+ spike in telehealth usage in less than 6 weeks • Onboarded 10,000s of providers in days How Pexip help
Slide 9: Adaptive Composition released as Tech Preview in Q1 2020
Adaptive Composition released as Tech Preview in Q1 2020 • Powered by AI & machine learning • Real time video processing • Ensure everyone is seen • Conditioned to visual communications • Give back time to all our users • Reduce anxiety surrounding video 9
Slide 10: Sales results and financials
Sales results and financials
Slide 11: Long-term goals
Long-term goals Revenue growth ARR of USD 300m by 2025 Long-term profitability +25% EBITDA margin by 2025 Market recognition Recognized leader position in the Meeting Solutions market within 3-4 years 11
Slide 12: First quarter sales highlights (1/2)
First quarter sales highlights (1/2) Strong development in ARR with ~50% growth YoY driven by extraordinary Q1 growth Contracted Annual Recurring Revenue (ARR) development Q1 2019 – Q1 2020 Q-o-Q growth in ARR Q1 2019 – Q1 2020 USDm USDm +20% +118% 57 +10% 9.5 +7% 47 +6% 43 40 38 4.4 2.4 2.7 2.0 Q1
Slide 13: First quarter sales highlights (2/2)
First quarter sales highlights (2/2) Strong development across both products and geographies ARR per geo Q1 2019 – Q1 2020 ARR per product Q1 2019 – Q1 2020 USDm USDm APAC AMERICAS SaaS Q1 2020 Q1 2020 EMEA YoY growth: Software YoY growth: 57 57 6 27% 47 47 72% 17 43 6 43 40 40 38 5 20 38 16 5 55% 5
Slide 14: Significant improvement in net upsell in Q1 2020
Significant improvement in net upsell in Q1 2020 Development in ARR portfolio Annual recurring revenue, USDm +22% -8% +50% +7% -8% 3.1 +37% 8.2 • Increased demand from Covid- +32% +32% 19 main driver for Q1 increase 2.4 2.8 Net retention of in LTM Net Retention 113% Net retention of 13.9 11.7 99% –
Slide 15: Revenue and gross margin development
Revenue and gross margin development Quarterly revenue development Q1 2019 – Q1 2020 Q1 2020 revenues breakdown per geo and segment NOKm NOKm EMEA Americas Apac Total Service 22.8 13.2 2.4 38.3 Software 59.7 37.0 15.1 111.7 150.1 Total 82.5 50.1 17.5 150.1 +67% 116.9 Comments Operating revenues - so
Slide 16: Operating expenses
Operating expenses Quarterly OPEX development Q1 2019 – Q1 2020 Comments NOKm Other operating expenses Salary and personnel expenses 109.4 Other Operating expenses +70% • Have increased investments in marketing in order to capture 36.8 increased need for video collaboration technology 80.5 • Increas
Slide 17: EBITDA
EBITDA Quarterly EBITDA development Q1 2019 – Q1 2020 Comments NOKm 35.8 +81% 32.0 • EBITDA positively impacted by high revenue in the quarter • Expect EBITDA to decline going forward as OPEX investments in Sales and Marketing, as well as R&D ramp up following the 19.8 capital raise in May 11.5 13.0
Slide 18: Cash flow bridge
Cash flow bridge Cash flow bridge Q1 2020 NOKm Comments 3.5 9.3 • CAPEX was mainly related to capitalization of own software development 35.8 91.7 • Increase in NWC and Trade receivables due 38.8 to strong sales towards the end of Q1 2020 75.5 28.2 • Significant impact from currency exchange 3.3 dif
Slide 19: Pexip Holding ASA - consolidated financial information
Pexip Holding ASA - consolidated financial information Income statement Q1 2020 – Q1 2019 Comments to other elements First quarter Year • Depreciation and amortization in line with 2019 (NOK 1.000) 2020 2019 2019 • High financial income related to currency. Significant currency impact also Revenue 1
Slide 20: Summary
Summary ]pexip[
Slide 21: Long-term goals
Long-term goals Revenue growth ARR of USD 300m by 2025 Long-term profitability +25% EBITDA margin by 2025 Market recognition Recognized leader position in the Meeting Solutions market within 3-4 years 21
Slide 22: Upcoming dates
Upcoming dates Update on contracted Annual Recurring Revenue By July 10th Q2 2020 quarterly presentation August 12th 22
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